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It will be interesting to discover whether the mighty Standard Life, which retained a hefty 75 per cent weighting in equities for longer than almost any other life insurer, is complacently ignoring that the world is changing.The most important idea that comes out of the academics’ research is that, whatever you might think from reading the papers, it is investment returns rather than annuity rates which are at the root of the pensions problem. A second, arguably even more surprising finding is that insurers – the people we love to hate for ripping off their customers – have, if anything, been too generous rather than too mean in setting annuity rates. They have paid out more than they should have, had they done their sums about mortality rates and so on correctly.davisbiz aol . If, as Alan Cook promises in his interview on page one, we are finally about to see National Savings & Investments wake from its Victorian slumber and challenge the leading financial service companies, investors are in for a rare treat. MoneynetIf, as Alan Cook promises in his interview on page one, we are finally about to see National Savings & Investments wake from its Victorian slumber and challenge the leading financial service companies, investors are in for a rare treat.

NSI has advantages private-sector competitors would kill for Its relationship with the Treasury, for a start. That is constricting, but it is also a powerful protection, the root of NSI’s ability to offer secure savings underlined with a Government guarantee. And the ability to pay interest tax-free, to help the Government raise money cheaply.In the hands of an experienced marketing executive, these intangible assets could be whipped up into an unbeatable combination. Mr Cook’s career does not indicate a lot of time spent in that direction, but he is well aware of the need for greater visibility and I am sure he can recruit marketing specialists to work under his direction and guidance.The big task is to yank the public perception of NSI from its grey, utilitarian image into something more dynamic That will not be done by a lick of paint and a fancy name People will demand new products paying attractive rates.

Can Mr Cook rise to the challenge?There has been much flapping over what investors should do about the prospect of an Iraqi war. One distinguished commentator berated personal finance editors for not coming up with a plan of action as soon as President George Bush turned up the heat last month.Events since have proved that censure premature. Saddam Hussein’s sudden agreement to receive weapons inspectors was a master-stroke. While President Bush can only fume, President Saddam can lead the inspectors on the wild-goose chase to end all wild-goose chases before the rest of the world runs out of patience sufficiently to sanction military action.. If Alan Cook, the new chief executive of National Savings & Investment (NSI), can achieve even a fraction of what he has on his agenda, we can expect to see the fusty old organisation pulled from the back of the nation’s drawer, dusted down and turned into the sexy, 21st century competitor for the saver’s pound he wants it to become. Moneynetsavingssearch If Alan Cook, the new chief executive of National Savings & Investment (NSI), can achieve even a fraction of what he has on his agenda, we can expect to see the fusty old organisation pulled from the back of the nation’s drawer, dusted down and turned into the sexy, 21st century competitor for the saver’s pound he wants it to become.
It is a tall order, as Mr Cook, who took over this week after a 32-year career with Prudential, is the first to admit. “National Savings is basically respected,” he said, “but you have to remind people it is still there So I have an opportunity to create an impact.

You can feel the goodwill towards it, and solid reliability does have an appeal, with the stock market the way it is.”He concedes that NSI is still associated with the premium bonds or Post Office savings book children are given when they are born or still toddling. “My son, Chris, cashed his in as soon as he was 21, to buy a car,” 49-year-old Mr Cook said. “But I want to make NSI the first thing people think of when they want to save My main concern is about our lack of visibility. Revitalising the image is what appealed to me.”Why did he leave the Pru after so many years? He is the same age as Mark Wood, his boss there, so he decided that NSI was his best chance of being given a crack at a top job.Now, most ambitiously of all, he wants to expand the organisation’s distribution channels to include independent financial advisers (IFAs) who, as he acknowledges, dance almost exclusively to Abba’s “Money Money Money” in fees or commission, and NSI’s simple product range does not easily lend itself to such payments.”We’ll have to look at that,” he said. “We may need to play around with the products, but our research shows 5 per cent of our business comes through IFAs already. What we don’t know is how often on top of that an IFA simply sends a client along to the Post Office to open one of our accounts.”The question is how far Mr Cook can widen the NSI offering beyond the present vanilla selection of savings accounts, bonds and certificates, enlivened only by premium bonds and this year’s daring guaranteed equity bond, its first foray into the stock market, but with a government promise that capital will always be returned in full.”We are competing with banks and building societies rather than insurance companies,” Mr Cook said. “I have no interest in launching a with-profits product, because there is no transparency and people cannot understand what they are going to get But the target is people with money to save and invest.